J.P. Morgan Sees Significant Upside In Medco Health Solutions (MHS)

J.P. Morgan Chase & Co. sees significant upside in shares of Medco Health Solutions, Inc. MHS, as it has a $78 price target on shares, nearly 30% higher than where shares are currently trading. It has an Overweight rating on shares. In a note sent to investors, J.P. Morgan writes, "We reiterate our Overweight rating on MHS. We continue to point to the positive fundamental outlook for the PBM industry, and believe several key factors should continue to drive strong growth for Medco going forward, including generics, specialty pharmacy, new business and share buybacks. Shares trade at 14.9x our 2011 adjusted EPS estimate of $4.06, well below the historical average and our EPS growth projection over the next several years." Shares of MHS closed at $60.62 on Friday.